Interruption In Service Due To Accident Would Not Amount To Break In Service For The Purpose Of S. 2A Of Gratuity Act: Calcutta High Court

A single judge bench of the Calcutta High Court comprising of Justice Arindam Mukherjee while deciding a Writ Petition in the case of M/s. Dalhousie Jute Company Vs. The State of West Bengal & Ors. has held that non-rendering of uninterrupted service due to accident would not amount to break in service for the purposes of Section 2A of Payment of Gratuity Act, 1972 (Gratuity Act) Background Facts Respondent No. 4 (Workman) joined the services of M/s. Dalhousie Jute Company (Employer) in 1994 as a Badli Worker and worked purely on a casual basis. The Workman met an accident at the factory premises in 1998 and could not work subsequently till 2000. The issue surrounded the entitlement of gratuity towards the Workman. It was contended by the Employer that the Workman was a Badli Worker and he also did not fulfil the requirement of continuous service to make him entitled to receive the gratuity. The Employer relied on entries from the year 1994 to 2000 in the register of leave with wages to prove their contentions before the Controlling Authority and the Appellate Authority. The Controlling Authority passed an order to refuse payment of gratuity to the workman but the same was overturned by the Appellate Authority which held that the Workman was entitled to gratuity from 1992 to 1998. Thus, the Employer filed the writ petition It was argued by the Employer that the Appellate Authority wrongfully concluded that the Workman was entitled to gratuity without considering the materials on record, evidence produced and its probative value. On the other hand, it was contended by the Workman that after introduction of Section 2A of the Gratuity Act, there is no requirement for working 240 days in a calendar year after continuous service has been rendered for 5 years. Findings of the Court The court observed that the register of leave with wages was an incomplete document as it provided for records only from 1994 whereas the Workman was allegedly employed since 1992. Further, under section 2A of the Gratuity Act, an employee is termed to be in continuous service for a particular period if during that period he renders uninterrupted service excluding the interruption on account of an accident. The court observed that: non-rendering of uninterrupted service due to such accident for that year or for a subsequent period will not amount to a break of service, if the workman is unable to attend the work due to such accident. The court further held that under section 4(1) of the Gratuity Act, gratuity is payable on termination of employment if the employee has rendered continuous service for not less than five years. However, competition of continuous service of 5 years is not necessary if termination of employment is due to death or disablement. The court remarked that since the termination of service took place due to an accident which resulted in disablement of the Workman, he was entitled to be paid gratuity from 1992 to 1998. With the aforesaid observations, the court dismissed the writ petition. Case No.- WPA 8705 of 2024 Case Name- M/s. Dalhousie Jute Company Vs. The State of West Bengal & Ors. Counsel for the Petitioner- Mr. Balai Chandra Paul Ms. Sumouli Dey for the petitioner Counsel for Respondents- Mr. Bikash Shaw for the respondent no.4, Mr. Susovan Sengupta & Mr. Manas Kumar Sadhu for the State Click Here To Read/Download Order

Interruption In Service Due To Accident Would Not Amount To Break In Service For The Purpose Of S. 2A Of Gratuity Act: Calcutta High Court

Udai Yashvir Singh

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Interruption In Service Due To Accident Would Not Amount To Break In Service For The Purpose Of S. 2A Of Gratuity Act: Calcutta High Court

Udai Yashvir Singh

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